Background:
Italy became a nation-state in 1861 when the regional states of the peninsula, along with Sardinia and Sicily, were united under King Victor EMMANUEL II. An era of parliamentary government came to a close in the early 1920s when Benito MUSSOLINI established a Fascist dictatorship. His alliance with Nazi Germany led to Italy's defeat in World War II. A democratic republic replaced the monarchy in 1946 and economic revival followed. Italy was a charter member of NATO and the European Economic Community (EEC). It has been at the forefront of European economic and political unification, joining the Economic and Monetary Union in 1999. Persistent problems include illegal immigration, organized crime, corruption, high unemployment, sluggish economic growth, and the low incomes and technical standards of southern Italy compared with the prosperous north.

Legislative branch:
bicameral Parliament or Parlamento consists of the Senate or Senato della Repubblica (315 seats; members elected by proportional vote with the winning coalition in each region receiving 55% of seats from that region; to serve five-year terms) and the Chamber of Deputies or Camera dei Deputati (630 seats; members elected by popular vote with the winning national coalition receiving 54% of chamber seats; to serve five-year terms) elections: Senate - last held 13-14 April 2008 (next to be held April 2013); Chamber of Deputies - last held 13-14 April 2008 (next to be held in April 2013) election results: Senate - percent of vote by party - NA; seats by party - S. BERLUSCONI coalition 174 (PdL 147, LN 25, MpA 2), W. VELTRONI coalition 132 (PD 118, IdV 3), UdC 3, other 6; Chamber of Deputies - percent of vote by party - NA; seats by party - S. BERLUSCONI coalition 344 (PdL 276, LN 60, MpA 8), W. VELTRONI coalition 246 (PD 217, IdV 29), UdC 36, other 4

Legal system:
based on civil law system; appeals treated as new trials; judicial review under certain conditions in Constitutional Court; has not accepted compulsory ICJ jurisdiction

Flag description:
three equal vertical bands of green (hoist side), white, and red; similar to the flag of Ireland, which is longer and is green (hoist side), white, and orange; also similar to the flag of the Cote d'Ivoire, which has the colors reversed - orange (hoist side), white, and green; inspired by the French flag brought to Italy by Napoleon in 1797

Independence:
17 March 1861 (Kingdom of Italy proclaimed; Italy was not finally unified until 1870)

Country name (Goverment):conventional long form: Italian Republic conventional short form: Italy local long form: Repubblica Italiana local short form: Italia former: Kingdom of Italy

Constitution:
passed 11 December 1947, effective 1 January 1948; amended many times

Executive branch:chief of state: President Giorgio NAPOLITANO (since 15 May 2006) head of government: Prime Minister Silvio BERLUSCONI (referred to in Italy as the president of the Council of Ministers) (since 8 May 2008) note - in Italy the prime minister is referred to as the president of the Council of Ministers cabinet: Council of Ministers nominated by the prime minister and approved by the president elections: president elected by an electoral college consisting of both houses of parliament and 58 regional representatives for a seven-year term (no term limits); election last held 10 May 2006 (next to be held in May 2013); prime minister appointed by the president and confirmed by parliament election results: Giorgio NAPOLITANO elected president on the fourth round of voting; electoral college vote - 543

Judicial branch:
Constitutional Court or Corte Costituzionale (composed of 15 judges: one-third appointed by the president, one-third elected by parliament, one-third elected by the ordinary and administrative Supreme Courts)

Stock of money:
NA note: see entry for the European Union for money supply in the Euro Area; the European Central Bank (ECB) controls monetary policy for the 15 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Economy - overview:
Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP. These activities are most common within the agriculture, constuction, and service sectors. Italy has moved slowly on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system and these conditions will be exacerbated by the recent global financial crisis. The Italian government is seeking to rein in government spending, but the leadership faces a severe economic constraint: Italy's official debt remains above 100% of GDP, and the fiscal deficit - 1.5% of GDP in 2007 - could approach 3% in 2009 as political pressure to stimulate the economy and the costs of servicing Italy's debt rise. The economy will continue to contract through 2009 as the global demand for exports drop.

Military service age and obligation:
18-27 year of age for voluntary military service; conscription abolished January 2005; women may serve in any military branch; 10-month service obligation, with a reserve obligation to age 45 (Army and Air Force) or 39 (Navy) (2006)

Manpower available for military service:males age 16-49: 13,884,079 females age 16-49: 13,158,378 (2008 est.)

Disputes - international:
Italy's long coastline and developed economy entices tens of thousands of illegal immigrants from southeastern Europe and northern Africa

Illicit drugs:
important gateway for and consumer of Latin American cocaine and Southwest Asian heroin entering the European market; money laundering by organized crime and from smuggling

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Quiz #2

1. What famous canal was built at the narrowest point between the Atlantic and Pacific oceans?

Atlantic-Pacific Canal

Transcontinental Canal

Panama Canal

Erie Canal

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